Law of Demand

Definition

States that, other things remaining equal (ceteris paribus), the quantity demanded of a good rises as its price falls and vice versa — establishing an inverse relationship between price and quantity demanded. Exceptions include Giffen goods, Veblen goods, and speculative demand.

Example

"When the price of mangoes falls from ₹80/kg to ₹50/kg, consumers buy more mangoes. This inverse relationship is the Law of Demand in action."

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